SFM PROCEDURE FOR EXTERNAL SERVICE PROVIDERS

SFM PROCEDURE FOR EXTERNAL

SERVICES PROVISION

APPROVAL
Reviewed By: Date Signature

Approved By:
 SFM PROCEDURE FOR EXTERNAL SERVICE PROVIDERS

Revision History

Date Description of Page Approval Issuing Revision

Change Authority Authority Number

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 SFM PROCEDURE FOR EXTERNAL SERVICE PROVIDERS

This procedure describes the process for the evaluation, selection and monitoring of
suppliers and the processes and controls for the purchase and verification of goods and
services.

2 Scope

This procedure contains the following sections:

4.1 Evaluation and selection of suppliers

4.2 Purchasing process and purchasing information
4.3 Verification of purchased product

5 Related documents

3 Abbreviations

ASL - Approved Suppliers List

SFM- Smart logistics and Facility management Nigeria ltd
ISO - International Organisation for standardization
MR - Management Representative
OM - Operations Manager
PO - Purchase Order
QF - Quality Form
QP - Quality Procedure

4 Procedure

It is the responsibility of the Management Representative and the Purchasing

Representative to ensure the implementation of this procedure including:

 Selection of suppliers that comply with required standards;

 maintenance an Approved Suppliers List (ASL);
 maintenance of relevant purchasing records.

The Purchasing Representative / MR holds and maintains the ASL and relevant purchasing
records. Records are maintained in accordance with SFM Control of Retained information
procedure.

4.1 Evaluation and selection of suppliers

Suppliers are selected on their ability to provide quality goods and services, that conform to
customers and all relevant statutory/ legislation and which are delivered on time and at the
right price.

Key product and material suppliers are listed on an Approved Suppliers List (ASL) which is
maintained within the company’s purchasing/accounting system. Key suppliers are
monitored on the basis of historic and current performance and the list of suppliers
maintained accordingly. New suppliers whose performance may affect service quality are
sent a Supplier Questionnaire, in advance of, or in conjunction with an initial order.
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An assessment of the supplier is made on receipt of a completed questionnaire, visit and/or

initial performance. If deemed necessary by the MR, a supplier audit maybe arranged.

The selection of a new supplier is based on one or more of the following:

 ISO 9001 certified supplier identified through questionnaire return

 Visit feedback from MR or delegate
 Initial order quality/environmental performance
 Successful supplier quality/environmental audit

A supplier is deemed an approved supplier if listed on the ASL of SFM and all purchasing
authorities have access to this list. Supported by relevant information e.g. completed
Supplier Questionnaire, suppliers are rated / listed on the ASL using one of the following
codes:

A Approved
A* Approved, Preferred
N Non-Approved

Suppliers currently being assessed may be rated as P, Provisional.

Historical suppliers who have a record of accomplishment of product/service supply and

have continued to meet quality/environmental requirements are rated as historically
approved, (A or A* code). For major suppliers, a contract of supply may be put in place.

Where a key supplier has not been used for a period exceeding one year (as indicated by
the purchasing system), the supplier must be re-evaluated in parallel with the placement of a
new purchase order and, where appropriate, the ASL updated.

Records of the performance of suppliers are maintained in delivery note records. Any
delivery issues such as damage, shortage, incorrect supply, late delivery etc are recorded in
goods receipt. If significant supplier nonconformity occurs, a Quality Report, is raised and
sent to the supplier for corrective action resolution. Key supplier performance is also
reviewed at Management Review meetings.

For outsource partners, in-depth supplier assessments are conducted. These may include
detailed audits, on site meetings, evaluation of supplier documentation, references and
review of market sector information.

Where Service Agreements, Statements of Work and/or Functional Specifications exist,

supplier performance is monitored against these where appropriate and areas for
performance improvement agreed.

4.2 Purchasing process and purchasing information

Purchases are made from an approved supplier except where the MR or Purchasing /
Accounts Department authorises a new supplier or specifies a supplier to satisfy particular
requirements. In conjunction with an order being placed with a new supplier, where the
supply directly affects quality or the environmental impact of a service, the supplier is
requested to complete a SFM Supplier Questionnaire and any other information deemed
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necessary to enable supplier evaluation.

Appropriate information is provided to the supplier to enable a request to be costed. This

may be derived from a site visit or through the provision of reports, drawings or job
specifications. For goods/materials, final supplier selection is from the approved list and is
nominally based on best price.

The D, PROC SFM, must sign purchase authorisation.

Receipt confirmation of a PO is always recorded or requested from the supplier and is stored
under the relevant reference. A copy of the PO is held as an open PO on the system to
await receipt of a signed delivery / job acceptance note and supplier invoice.

Relevant purchasing information is maintained in both hardcopy and electronic form to

support the required level of traceability and is accessible by authorised staff.

This information is retained in accordance with the Master Retained information’s List.

4.3 Verification of purchased product

Nominally all goods/materials are delivered to the company’s premises.

The verification of a delivery of goods/materials is carried out by the user department,

Laboratory’s Manager or a delegate against the supplier delivery note and any supporting
delivery documentation. On acceptance, via inspection (or physical count where
appropriate), the delivery note is signed / initialled as an indication of acceptance and
forwarded to Purchasing / Accounts to await invoice matching. Goods receipt is also booked
in against the open PO on the system.

 Any adverse issues (damage, shortages etc) are annotated on the delivery note
where appropriate and the goods are either rejected back to the supplier or
appropriately stored until the order is satisfactorily completed. Under such
circumstances, the OM or delegate may raise a Quality Report to track the agreed
corrective action. The delivery paperwork is then filed to await invoice (or passed to
the OM or delegate if a significant issue is noted).

In cases where a delivery note is not received from the supplier, the delivery is normally
checked off against the original order.

The MD approves subcontractors and the MR / OM or delegate inspects subcontract

services on completion; the subcontractor’s job acceptance paperwork is then signed with a
copy being retained by the company. This indicates that the task has been satisfactorily
completed. If the quality of the work is not acceptable then the paperwork is annotated
accordingly and the OM or delegate initiates appropriate corrective action. Where the
subcontractor does not operate a satisfactory sign-off process, the company will complete a
Quality Report for signature by the subcontractor.

On receipt of an invoice, the Accounts Department verifies the invoice against the original
requisition, the PO and the delivery note and if all is in order, the invoice is considered ready
for payment. Once final authority to pay is granted, the invoice is then paid either
electronically or by cheque/bankers draft and the purchasing records updated accordingly.
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The company in accordance with the Master Retained information List and SFM procedure
maintains records of verification for Control of retained information

5 Related documents

 Supplier questionnaire
 Approved suppliers list.
 Quality report.
 Control of records.
 Master records list.
 Purchase order.

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Appendix – Summary Flowchart

Purchasing requirement
identified

N Approved
Supplier
supplier list
approved?

QFaa supplier Supplier

Y
questionnaire evaluated and
(as req’d) approved

PO including
PO raised, approved purchasing
supplier contacted and information
PO sent

Supporting PO
Product / service / information (as
material received required)

Delivery verified by OM
or delegate

N Issue recorded on
Delivery Delivery OK? delivery note. Quality
note report raised for
significant issue

Y
Quality report
Delivery note dated QFcc (as
and signed and filed required)
awaiting invoice

Delivery rejected to
supplier / credit
Invoice received and requested
matched to PO /
Delivery note